Question

Explain in detail Trade Credit as Internal Source of finance to business enterprise.

Answer 1

Meaning: Trade credit is an important external source of working capital financing. It is a short-term credit extended by suppliers of goods and services in the normal course of business, to a buyer in order to enhance sales.

Answer 2

Meaning: Trade credit is an important external source of working capital financing. It is a short-term credit extended by suppliers of goods and services in the normal course of business, to a buyer in order to enhance sales